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David Trainer  

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  • True Fund Costs: Consumer Staples Sector [View article]
    berloe:

    This is just one part of my three-part analysis of Consumer Staples funds. Tomorrow I will post my analysis of the holdings in these funds.
    Oct 13, 2014. 11:44 AM | Likes Like |Link to Comment
  • Strike While The Iron Is Hot: Stryker [View article]
    User 657,
    Thanks for your comment.
    Pls see section of my article "Ignore the Price to Earnings Ratio".
    Oct 9, 2014. 11:23 AM | 1 Like Like |Link to Comment
  • Best And Worst Mid-Cap Growth Style ETFs, Mutual Funds, And Key Holdings [View article]
    Aces and Eights:

    I only add the disclosure note if I do have a position in any ticker mentioned. If I don't have that disclosure, it means I don't have a position in any of the stocks mentioned.
    Sep 30, 2014. 11:50 AM | Likes Like |Link to Comment
  • Danger Zone: AOL [View article]
    Alex Pitti:

    AOL is roughly flat since I wrote this article while the S&P 500 is up 6%. All the fundamental arguments I made above still hold, which is why I'm skeptical that the rumored Yahoo/AOL merger will happen.
    Sep 26, 2014. 05:59 PM | Likes Like |Link to Comment
  • Best And Worst Small Cap Value Style ETFs, Mutual Funds, And Key Holdings [View article]
    Borbastic:

    I prefer investing in individual stocks, but many of my clients and readers prefer ETFs and mutual funds, so I put out these articles to give them insight into which funds have the lowest costs and the highest quality holdings.
    Sep 26, 2014. 09:11 AM | Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    baerrus - here is my methodology for FCF: http://bit.ly/1riOuyq

    Now, pls explain how I play loose with "Standard" terminology. I think that is exactly what AMZN is doing - that is the point of the article.

    On the other hand, my firm calculates FCF consistently across all 3000 stocks we cover. I also think we calculate more accurately.
    Here's a white paper on all the adjustments we make to reverse accounting distortions: http://bit.ly/1rkdSm2

    Here's a summary on why and how accounting adjustments are important:
    http://bit.ly/1rkdQuy
    Sep 24, 2014. 12:56 PM | 6 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    Spencer Knight,
    Great point. There is a difference between a business that is good for consumers vs shareholders.

    Most of the benefits of online shopping fall to consumers not the bottomlines of e-commerce businesses. Retail is still retail even if the medium of exchange is different.
    Sep 24, 2014. 12:51 PM | 1 Like Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    hi jimmyg56,
    Thanks for your comment.
    Mauboussin was my first boss at Credit-Suisse. He taught me most of what I know about value-based analysis.
    I built the Value Dynamics Framework for CS First Boston, which became CSFB Edge, then Credit-Suisse HOLT.

    My team did most of the ROIC/NOPAT group that Mauboussin used.
    I started New Constructs to bring some scale to the ROIC modeling process and, more importantly, to the data gathering process - ROIC models are not that complex. The key to good ROIC is the quality and completeness of data, which means combing thru all the 100s of pages of disclosures in SEC filings. Gotta do your homework.

    Relying on databases like Compustat to perform EVA or CFROI or ROIC calcs is like judging a book by its cover.
    Sep 24, 2014. 12:49 PM | 1 Like Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    MarketLost:
    Great point. The numerous version of cash flow make talking about any one difficult - that is a key point in the article.
    At my firm, we calculate cash flow consistently (and we believe more accurately) for all 300 stocks we cover.

    High quality cash flow analysis is difficult to find. That is what we provide the service we provide. No one else does as much homework as we do to ensure they have the correct, apples-to-apples cash flows.

    No one else's methodologies are as transparent either.
    Here is our definition of Free Cash Flow along with links to all the components.
    http://bit.ly/1riOuyq
    Sep 22, 2014. 04:49 PM | 1 Like Like |Link to Comment
  • Best And Worst Mid Cap Value Style ETFs, Mutual Funds, And Key Holdings [View article]
    sailor1012, which funds do you want me to name? I give the tickers of the five best and worst and the names of the best and worst funds.
    Sep 22, 2014. 09:05 AM | 1 Like Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    CAInsBroker:

    The problem is that operating leases allow a company to immediately earn revenue from an asset while not paying the full cost up front. That means if you're comparing two companies, one of which buys an asset and one that leases it, the leasing company is going to appear to have superior cash flow in the initial year. However, the business of the leasing company is not in any way superior, it just structured the transaction differently.

    Think of operating leases as the equivalent of taking on debt to fund the purchase of an asset. In both cases, the company will experience very little cash outflow initially but will continue to pay the cost over the coming years, either due to interest or rental expense. Investors need to look past the financing structure and understand that, operationally, these are fundamentally similar transactions.
    Sep 19, 2014. 03:43 PM | 7 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    Ernest - are you about that....your logic only works if you are NOT an equity holder. Stock-based compensation costs equity holders. Ignoring that fact only leads to overvaluing an investment.
    Sep 19, 2014. 03:11 PM | 6 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    Thanks Mitch! Too many investors only look at the income statement and ignore the balance sheet. You can't assess the cash flows of a business without looking at their assets and liabilities.
    Sep 19, 2014. 12:53 PM | 3 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    ahw5506:

    Whether Twitch works out depends on the long-term popularity of live video game streaming, which is hard to predict at this point. Either way, for ad profits to support Amazon's valuation it would have to make a much bigger push into what is already a crowded and competitive field.
    Sep 19, 2014. 11:32 AM | 4 Likes Like |Link to Comment
  • Best And Worst Utilities Sector ETFs, Mutual Funds And Key Holdings [View article]
    berloe: I don't currently cover closed end funds
    Sep 10, 2014. 12:30 PM | Likes Like |Link to Comment
COMMENTS STATS
1,018 Comments
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